Offering Memorandum Hilton Garden Inn Shreveport | Hampton Inn & Suites Natchez Ttableable Ofof Contentcontentss
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OFFERING MEMORANDUM HILTON GARDEN INN SHREVEPORT | HAMPTON INN & SUITES NATCHEZ TTABLEABLE OFOF CONTENTCONTENTSS MichaelMichael Bull, Bull, CCIM CCIM DISCLAIMERDISCLAIMER 33 BrBrokokerer EXECUTIVEEXECUTIVE SUMMARY SUMMARY 44 Michael@[email protected] PROPERTYPROPERTY HIGHLIGHTS HIGHLIGHTS 55 404-876-1640404-876-1640 x101 x101 PROPERTYPROPERTY INFORMATION INFORMATION 77 Broker of Record: PROPERTYASSUMABLE IMPROVEMENT CMBS FINANCING PLAN 99 SubhashSubhash Naik Naik T ABLE OF CONTENTS Michael Bull | Bull Realty ASSUMABLE CMBS FINANCINGPHOTOS 1010 BrBrokokerer DISCLAIMER 3 [email protected] Bull, CCIM | 404-876-1640 x 101 LOCATIONSALE COMPS MAPS 1116 Deals@[email protected] BrMSoker License# 19258 EXECUTIVE SUMMARY 4 661-978-3109661-978-3109 SHREVEPORT MARKETSTR OVERVIEWREPORTS 1217 Michael@BullRLA License# ealty#0995682801-ACT.com PROPERTY HIGHLIGHTS 5 SHREVEPORTHISTORICAL MAJOR FINANCIALSEMPLOYERS 1423 404-876-1640 x101 PROPERTY INFORMATION 7 NATCHEZ MARKETPRO OVERVIEW FORMA 1724 Co-Broker: ASSUMABLE CMBS FINANCING 9 INVESTMENT ANALYSIS PORTFOLIO 1935 SubhashSubhash Naik Naik | Hotel Brokers of America NATCHEZ MAJOR EMPLOYERS PHOTOS 10 [email protected] | 661-978-3109 STABILIZEDTEAM VALUATION PROFILE 2336 LOCATION MAPS 16 Deals@hbofBrBrLicense#okeroker of of R Rec ec01717362americordord a.com CONFIDENTIALITY AGREEMENTPHOTOS 2637 SHREVEPORT MARKET OVERVIEW 17 Michael661-978-3109Michael Bull Bull LOCATION MAPS 32 BullBull R Realtyealty,, Inc. Inc. SHREVEPORT MAJOR EMPLOYERS 23 SHREVEPORT MARKET OVERVIEW 34 MSMS License# License# 19258 19258 | | LA LA License# License# #0995682801-A #0995682801-ACTCT NATCHEZ MARKET OVERVIEW 24 SHREVEPORT MAJOR EMPLOYERS 40 NATCHEZ MAJOR EMPLOYERS 35 NATCHEZ MARKET OVERVIEW 41 BullBull R Realtyealty,, Inc. Inc. Bull Realty, Inc. TEAM PROFILE 36 5050 Glenlak Glenlakee Parkw Parkway,ay, Suit Suitee 600 600 NATCHEZ MAJOR EMPLOYERS 52 Br50oker Glenlake of Record Parkway, Suite 600 CONFIDENTIALITY AGREEMENT 37 AtlantAtlanta,a, GA GA 30328 30328 TEAM PROFILE 53 MichaelAtlanta, Bull GA 30328 BullRBullRealtyealty.com.com BullBullRealty.com Realty, Inc. MS License# 19258 | LA License# #0995682801-ACT Bull Realty, Inc. 50 Glenlake Parkway, Suite 600 Atlanta, GA 30328 BullRealty.com Exclusively Co-listedExclusivelyExclusively by Bull listedlisted Realty, byby BullInc.Bull & Realty,Realty, Hotel Inc.Inc.Brokers of America 59715971 FinancialFinancial PlazaPlaza || PPagagee 22 ofof5337 Exclusively listed by Bull Realty, Inc. 5971 Financial Plaza | P age 2 of 37 DISCLAIMER HGI SHREVEPORSHREVEPORTT & HAMPHAMPTTON NAON NATTCHECHEZZ Bull Realty has been retained as the exclusive listing broker to arrange the sale of the Subject Property. This Offering Memorandum contains selected information pertaining to the Property but does not purport to be all-inclusive or to contain all of the information that a prospective purchaser may require. All financial projections are provided for general reference purposes only and are based upon assumptions relating to the general economy, competition and other factors, which therefore, are subject to material change or variation. Prospective purchasers may not rely upon the financial projections, as they are illustrative only. An opportunity to inspect the Property will be made availableto qualified prospective purchasers. In this Offering Memorandum, certain documents, including financial information, are described in summary form and do not purport to be complete or accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to review independently all documents. This Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement, suitability or advice as to the value of the Property by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers and/or to terminate discussions with any party at any time with or without notice. Owner/Seller shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer on the Property unless a written agreement for the purchase of the Property has been fully executed, delivered and approved by the Owner/Seller and any conditions to the purchaser's obligations therein have been satisfied or waived. The Owner/Seller reserves the right to move forward with an acceptable offer prior to the call for offers deadline. This Offering Memorandum may be used only by parties approved by the Broker. The Property is privately offered, and by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it if requested and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied orotherwise reproduced or disclosed to anyone without the prior written authorization of Bull Realty, Inc. The terms and conditions set forth above apply to this Offering Memorandum in its entirety and all documents, disks and other information provided in connection therewith. Page 3 of 37 EXECUTIVE SUMMARY HGI SHREVEPORSHREVEPORTT & HAMPHAMPTTON NAON NATTCHECHEZZ OOVERVERVIEWVIEW Bull Realty, Inc. and Hotel Brokers of America are pleased to offer, on exclusively co-listed basis, the opportunity to acquire the fee-simple interest in the 86-key Hampton Inn & Suites in Natchez, MS and the 135-key Hilton Garden Inn in Shreveport, LA (referred to herein as the “Property(s),” “Asset(s),” or “Hotel(s)” both unencumbered of management. Both assets require significant PIPs, offering investors renovation upside, as well as, management upside. The properties are located on the main east-west arteries of their respective markets, nearby to primary market drivers. Both properties are offered unpriced, the seller is encouraging investors to make offers as these properties will be sold to the highest bidder. Page 4 of 37 PROPERTY HIGHLIGHTS HGI SHREVEPORSHREVEPORTT & HAMPHAMPTTON NAON NATTCHECHEZZ HAMPHAMPTTONON INN & SUITESUITES NAS NATTCHECHEZZ HIGHLIGHTHIGHLIGHTSS • Directly off U.S.-425 (25,000 ADT) • Antebellum tourist destination • Natchez Pilgrimage Tours • Situated on bluffs overlooking Mississippi River • Possible docking location for Viking Cruise Lines • Natchez Convention Center • Magnolia Bluffs Casino • Merit Health Natchez • Port of Natchez • Correction Corporation of America • Grand Village of Natchez Native Americans • Emerald Mound Page 5 of 37 PROPERTY HIGHLIGHTS HGI SHREVEPORSHREVEPORTT & HAMPHAMPTTON NAON NATTCHECHEZZ HILHILTTONON GARDEN INN SHREVEPORSHREVEPORTT • Directly off I-20 (70,525 ADT) • Shreveport Regional Airport • Barksdale Air Force Base • Cyber Innovation Center • Air Force Global Strike Command • LSU Health Sciences Center • VA Hospital • Casinos • 51 Annual Festivals • #4 film industry in the nation Page 6 of 37 HAMPTON INN & SUITES NATCHEZ HGI SHREVEPORSHREVEPORTT & HAMPHAMPTTON NAON NATTCHECHEZZ AddrAddress:ess: 627 S Canal Street, Natchez, MS 39120 CounCounty:ty: Natchez-Adams SitSite Size Size:e: 2.27 AC Building SizBuilding Size:e: 55,467 SF ZZoning:oning: Commercial YYear Built:ear Built: 2008; Renovated 2013 Number Of StStories:ories: 4 Number Of KKeeyys:s: 86 FrFraming:aming: Stick ExExtterior:erior: Stucco RRoof:oof: PTO HVHVAAC:C: PTAC/Central King Studio: 31 King Study Sofa-bed: 9 RRoom Mix:oom Mix: King ADA: 3 King ADA Suite: 1 Double Queen: 39 Double Queen ADA: 3 Amenities:Amenities: Free hot breakfast, outdoor pool, fitness room, business center, meeting space Page 7 of 37 HILTON GARDEN INN SHREVEPORT HGI SHREVEPORSHREVEPORTT & HAMPHAMPTTON NAON NATTCHECHEZZ PrProperty Addroperty Address:ess: 5971 Financial Plaza, Shreveport, LA 71129 PParish:arish: Caddo SitSite Size Size:e: 3.21 AC Building SizBuilding Size:e: 91,440 SF ZZoning:oning: B-3 YYear Built:ear Built: 2008; 2012 Number Of StStories:ories: 4 Number Of KKeeyys:s: 135 FrFraming:aming: Stick ExExtterior:erior: Stucco RRoof:oof: Pitched Shingles HVHVAAC:C: PTAC/Central King: 70 King Suite: 24 RRoom Mix:oom Mix: Double Queen: 31 Double Queen Accessible: 4 King Accessible: 4 King Suite Accessible: 2 Restaurant, bar/lounge, indoor pool, Amenities:Amenities: fitness room, business center, meeting space Page 8 of 37 ASSUMABLE CMBS FINANCING HGI SHREVEPORSHREVEPORTT & HAMPHAMPTTON NAON NATTCHECHEZZ ASSUMABLE FINANCING ASSUMABLE LLOOAN DETAN DETAILSAILS Lender Rialto Mortgage Finance The Hampton Inn & Suites Natchez and Hilton Garden Inn Shreveport are Servicer LNR Partners, Inc. / Wells Fargo currently cross collaterized and encumbered by CMBS financing; the current Loan Number 300571016 balance is about $12.4M, at a 5.975% interest rate, maturing in June 2023. Current Principal Balance $12,400,000 Assumption should be considered due to the large Change of Ownership PIP’s Current Interest Rate 5.975% required on both properties. Completion of the PIPs and relaunching properties Monthly Payment $90,920 will correlate closely with the CMBS balloon payment and a new loan with a Amortization 25 years lower interest rate could be obtained. FF&E Reserve 4% of Gross Revenues • Directly off